Lesson 3 of 3
Understanding Your CIBIL Score
Your CIBIL score ranges from 300 to 900. Above 750 means excellent — best loan rates and easy approvals. 650-750 is average — loans possible but at higher rates. Below 650 means poor — most loan applications rejected. How to improve it: Pay every EMI and credit card bill on time without fail. Keep credit utilization below 30% — if your credit limit is Rs 1 lakh, spend under Rs 30,000. Do not apply for multiple loans simultaneously. Keep old credit cards open — credit history length matters. Check your CIBIL score free once per year at cibil.com.
Key Takeaway
Pay on time, keep utilization low, do not apply for too many loans at once. A 750+ score unlocks the best financial products.